Joint call for action on access to cash
The BRC led a joint consumer and business trade association call for Government action on access to cash today along with BIRA, FSA, ACS and Which?
The joint press release can be read below, and the BRC response to the HM Treasury call for evidence on access to cash can be found here – log in to view.
ACTION NEEDED TO SAVE CASH PAYMENTS
25th November 2020
- - Industry and consumer bodies issue joint call on Government to protect access to cash
- - Government call for evidence on access to cash closes today
- - Over 2 million people in the UK entirely dependent on cash
Retailers across the country alongside consumer group Which? are today making a joint appeal for the Government to intervene to safeguard millions of consumers and businesses who rely on cash.
Whilst cash use has been falling in recent years, according to the British Retail Consortium, cash purchases totalled £78bn in retail sales last year. It remains an important method of payment with 2.2 million people entirely dependent on cash in the UK1. Furthermore, two-thirds (67%) of consumers use cash more than once a week and one-in-four (28%) people retain a preference to pay via cash2.
The pandemic has led to a further drop in cash purchases as customers chose alternative channels. Yet, even as the number of cash transactions have fallen, retailers are finding it increasingly difficult to secure basic cash services – such as store collections, while the cost of these services levied by banks and other providers has risen.
With costs increasing for facilitating of cash transactions, retailers are calling on the Government to step in to maintain competitive commercial cash supply services across the UK and protect cash-dependent consumers. It is also important that shops are compensated fairly for providing customers with financial services through store ATMs and cashback. Retailers including the Post Office have been increasingly called upon to stand in for banks in recent years with 10,000 fewer ATMs in operation than in 2017 and 3000 fewer branches than 2015. Forcing retailers to hold large amounts of cash also increases the risk of crime, raising [insurance] costs for retailers and putting pressure on consumer prices.
Not being able to access and spend cash has alarming consequences for consumers, especially those in the UK’s more remote communities, while the move towards pay-to-use ATMs is major concern in less affluent areas where people are penalised and disincentivised to withdraw cash, with adverse knock-on effects for local economies.
The joint call for action comes from the British Retail Consortium (BRC), Association of Convenience Stores (ACS), Federation of Small Businesses (FSB), British Independent Retailers Association (Bira) and Which? on the day that the Government’s call for evidence on access to cash closes.
Andrew Cregan, Payments Policy Advisor, British Retail Consortium said:
“Cash is a key part of the payment mix, accounting for 37% of all retail transactions last year. Whilst the pandemic has resulted in an increase in card payments, ongoing economic uncertainty will place further pressures on customers who rely on the availability of cash.
“With cash services increasingly difficult to obtain and the cost of these services rising, the BRC is calling for fair compensation for retailers providing financial services to their customers which will in turn protect access to cash for many vulnerable people.”
Martin McTague, FSB National Policy, Vice Chairman said:
“Four in ten small high street firms say cash is still the top payment method of choice among customers. By protecting access to cash and making it affordable and safe for small firms to handle, we’re supporting local economies and society’s most vulnerable. It’s important that, alongside government legislation, we trial new routes through which cash can reach those who need it in ways that work for all.”
James Lowman, Chief Executive, Association of Convenience Stores said:
“Millions of consumers still rely on cash every day and local shops are increasingly being relied upon to give people access to their cash. Many local shops already provide cashback services to customers, but this may not be appropriate for every store and should not be seen as a simple replacement for the ATM network. Where local shops are able to provide cashback, they should be appropriately renumerated for that service. Whether it’s providing ATMs or cashback, retailers cannot be expected to offer these services at a loss.”
Gareth Shaw, Head of Money, Which? said:
"The way that consumers are purchasing goods and services is changing, but millions of people still rely on cash.
“After huge numbers of ATM and bank branch closures in recent years, the government must urgently introduce its promised legislation to ensure consumers have local access to cash for as long as they need it.
“The FCA, which should be the single regulator for cash, needs to closely track cash acceptance, as protecting access will be undermined if there is nowhere to spend it – and would exclude some of the most vulnerable in society from being able to pay for vital products and services.”
Jeff Moody, Commercial Director, Bira said:
"Retailers provide essential roles in their community and acceptance and access to cash is another example, but with so many high street banks disappearing more and more retailers are being seen as local cash access points. However, retailers should not be experiencing higher costs in providing this service and we look to Govt to ensure that the costs associated with cash handling and availability are taken into account in any review."
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